ACCC clears Sigma sale to South Africa’s Aspen

The competition watchdog cleared Sigma Pharmaceuticals’ $900 million sale of its generic drugs business to South Africa’s Aspen Pharmacare on Thursday, after Aspen agreed to give up some products.

Sigma’s shares jumped 2.6 per cent in relief as the commission’s approval paves the way for a shareholder vote on January 14 on the long-awaited sale, which the beleaguered company needs to pay down debt.

The Australian Competition and Consumer Commission delayed its ruling in October, when it raised concern that Aspen’s acquisition of Sigma’s generics business would eliminate the only competitor in the market for some of its drugs.

To appease the commission, Aspen agreed to sell off two of Sigma’s anti-inflammatory steroid drugs, Sone and Solone, and its own LPV penicillin product, and Sigma agreed to keep its iron supplement Ferrosig.

Sigma shares closed up 2.6 per cent at 40¢, beating a 0.3 per cent gain in the broader market